All of us have enjoyed watching top-class football action in FIFA 2018. It’s over but will be remembered for major upsets – Italy, Germany or Messi, Neymar to name a few..
Football is a beautiful game & we can also learn a few lessons – Financial 🙂
I don’t have to tell you the importance of Goals in Football & your life… Let’s learn a few important lessons…
Great players, great coaches or great managers alone cannot win the World Cup. All aspects of a team – players, practice sessions, budget and relationship between coaches, manager and players have to be managed effectively to get the best results. Only having a great coach or a great past record will not help.
For example, Germany has a wonderful record in the World Cup but crashed out early. Brazil has many star players but that was not enough for them to stay on till the finals.
Different players and strategies against different competitors have to be managed appropriately. Similarly, different asset classes have to be managed differently depending on their characteristics, current performance and future potential.
Right Mix of Assets
A football team cannot win by having strikers only or only defenders. A good team will have the right mix of strikers, defenders, midfielders, wing backs and solid goalkeepers.
Belgium were two goals down in the match against Japan. Then in the last 20 minutes of the game, they scored three goals to win the match.
Similarly, sometimes assets do not give returns as per expectations. Other times, we may make losses. It is important to take a rational approach and take steps to mitigate the losses. We cannot be led by superstitions, wrong advice or ill-informed tips.
It is important to be persistent till the investment goal is achieved.
Preparations for the World Cup start really early. Players are identified early on and based on their performance, they are selected and groomed for the World Cup.
Similarly, you have to start investing when you are young. This will ensure that you are in it for the long-term and you have time to build your wealth and rectify mistakes if any. The power of compounding will work on your investments which will allow you to make maximum gains.
Goal Oriented Approach
A good team develops strategies to play the game. The strategy is then tweaked depending on the opponent, match conditions etc. The team is committed to winning the match by scoring goals. Similarly, you should have the goals in your life.
You should set up short-term, medium-term and long-term investment goals. You should then manage your investments such that you achieve your goals.
Stay away from fouls
Players who committed fouls in the knock out stage missed the next game which means changing strategy and looking for alternate players.
You should not break the rules of investment. For example, trading based on tips can lead to big losses. Deviating from the financial plan can lead to missed goals.
Make the most of penalties, penalty corners and free kicks
It is not easy to score goals. When a team gets a free kick or a corner, they make the most of it. Mile Jedinak, Cristiano Ronaldo and Mohamed Salah have very good conversion rates of penalties.
When you get a windfall such as a bonus or a cash prize, do not squander it away. Use it to achieve your investment goals. You can use it to increase your investment in a particular asset or pay off a loan rather than spending it on random things.
At the same time, if you miss a good investment or have to sell off an investment for some reason, do not be distraught. Move on by tweaking your investment strategy to suit the current scenario.
Hope you enjoyed this post – will love to hear football analogies from you in the comment section.